Is Equipment as a Service the future of your fleet?

What makes this model worth a look

The primary benefit here is risk transfer. In a traditional acquisition model, you own it all: the asset, the risk of catastrophic failure, resale value fluctuation, and maintenance cost inflation. But with EaaS, the supplier owns all of that, absorbing the risks along the way.

Other key benefits include:

• Cash flow alignment: The more you work, the more it costs — but working more means you’ll generate more revenue as well. If you aren’t working (and thus, not billing clients), your fleet expenses drop. This is a huge advantage for fleets doing seasonal or project-based work.
• Guaranteed uptime: Because the supplier owns the fleet, they often include an availability guarantee. If a machine goes down, they begin losing revenue immediately. So they fix it or replace it quickly, often with financial penalties on them if they fail. This also reduces your need to keep spare machines around.
• Technology access: The fleet you use can change over time, so you’re not locked into fixed production capacities or technology that ages. You’re constantly cycling into newer, more efficient machines without the hassle of rebuilding or selling the old ones. And your staff doesn’t have to keep up with new tech because support is included.

A real-world example

To understand the impact of EaaS, consider Bettencourt Dairies. While it’s an ag operation, the demands on their fleet mirror the high-cycle environment of other production operations. As one of the largest dairy operations in North America, they have over 65,000 cows across nine locations. They rely on a large fleet of wheel loaders running up to 14 hours a day to feed the herd and maintain facilities.

Rick Onaindia, the CFO at Bettencourt, told us that before EaaS, they were constantly shuffling leased units around to avoid going over hour limits and struggling to manage maintenance schedules. It was noise that distracted them from their actual job of producing dairy products.

They transitioned their fleet to Volvo CE wheel loaders under an EaaS agreement and now, instead of managing depreciation schedules and mechanic availability, they focus on their business. Volvo CE and their local dealer monitor the fleet, handle all service, and ensure that the wheels keep turning. Essentially, they were able to trade upkeep for uptime.

Is EaaS right for you?

While I’m a big believer in this model, I’ll be the first to tell you that it isn’t for everyone.

You should consider EaaS if:

• You have high, predictable utilization (averaging 1,200+ hours a year) over a long period.
• Your fleet is critical to production — uptime is very important, if not vital.
• You want to get out of the repair shop business and reallocate technicians and inventory to more value-adding areas.
• You prefer OpEx over CapEx for balance sheet health and more efficient cash flow.

You probably shouldn’t consider EaaS if:

• You have short-term fleet needs or are unable to commit to longer terms (making renting a better fit).
• You have an incredibly robust, low-cost internal maintenance infrastructure and fleet competence that you want to keep using.
• You only need one or a few machines. The benefits of EaaS compound as fleet size increases.
• Your fleet sees a high frequency of accidental damage. While EaaS covers maintenance, it isn’t a catch-all for damaging operational conditions or operator error.

What to expect with EaaS

If you decide to explore this route, expect a conversation, not just a price tag. Because this is a long-term partnership, the process starts with a deep dive into your operation.

At Volvo CE, for example, we look at your site conditions, your operator habits, and your production goals. We then build a rate structure that includes the machine, maintenance, and an uptime guarantee to fit your needs.

Once the contract is live, expect transparency. You shouldn’t have to wonder if a service was completed. In the case of Bettencourt Dairies, we have frequent touchpoints involving the customer, dealer, and Volvo CE to continuously review fleet health and utilization efficiency.

Ultimately, EaaS is a paradigm shift. It requires letting go of the idea that you need to own your iron to control your operation. Instead, you’re bringing in a partner to manage a key cost element for you, transferring risks and sharing incentives so you can focus more on the revenue-generating side of your business.

As more contractors and producers are discovering, the most valuable thing isn’t owning the equipment — it’s using the equipment.

David Nus is head of fleet management — Region Americas at Volvo Construction Equipment. He leads the execution and growth of EaaS and related fleet solutions. Nus has been with the company for more than 21 years and previously spent 10 years with Hitachi Mining. He holds a bachelor’s degree in engineering from Purdue University’s School of Aeronautics and Astronautics.

This article originally appeared in the April 2026 issue of Heavy Equipment Guide.